Tim Hortons Branding: Sizing Up the Customer Experience

Banner of New Tim Hortons Hot Cup Sizes

Canadians love coffee. Coffee is the #1 beverage for adults in Canada. The average Canadian drinks almost 50% more coffee than their U.S. neighbours. Most Canadians also love Tim Hortons. It is arguably Canada’s most beloved brand. Tim Hortons has built its brand on a well executed brand strategy. Tim Hortons promises freshness. Their personality is small town friendly. Their position is great value. In our Distility 1day1brand workshops, Tim Hortons is one of our go-to examples; Distility 1day1brand participants learn about brand promise, brand personality and brand position by comparing Tim Hortons and Starbucks.

Tim Hortons brand changes make headlines in Canada.

Given the Tim Hortons brand popularity, it is no wonder that its announced cup size change is considered newsworthy. Yes, for our readers outside Canada, you didn’t misread the last sentence, a coffee cup size change is making headlines and even the evening news.

Tim Hortons is changing the name of their hot cup sizes on January 24, 2012, so that extra-large became large, large became medium, medium became small and small became extra-small. In the troubling “super-sizing” trend, it has also introduced a new 24 ounce extra-large size. The change doesn’t include a pricing increase. The price of each size is staying the same – just the name of size is changing. The stated reason for the change is to make room to offer that 24 ounce giant cup of coffee that some customers said they wanted.

Tim Hortons branding change show it is thinking about the Customer Experience.

Beyond the super-sized coffee cup, the change is at its core all about customer experience and ensuring that the customer experience reinforces the Tim Hortons brand position of great value. As the larger size cups of other chains (Starbucks, McCafé, Second Cup, etc.) become the norm, Tim Hortons cups sizes have gotten out of sync with its competition. Prior to the change, a Tim Hortons “large” cup was the size of its competitors’ “medium” cup. The change will make Tim Horton cup size names more in line with its competition.

While it may seem to be an insubstantial change and that cup size names don’t really matter, a brand which is built on great value is not built if customers perceive that they are getting less.

The lesson is that all aspects of the customer experience is important. It is all the aspects of the brand experience (large and small) that can add up to make or break your brand. To endure, a brand must keep its eye on the competition and trends in its category, never lose sight of the customer experience and always deliver on their brand’s promise, position and personality.

  • http://twitter.com/Chris_Eh_Young Chris Eh Young

    I do agree, their spots are really well done. Tim Hortons made
    this news because 1) Things to do with health are news nowadays and this
    XXL cup exceeds doctor recommended limits for caffeine intake daily.
    Tim Hortons now has a health concern on its hands. Hardly good news but
    news indeed. 2) Tim Hortons has become synonymous with Canadian coffee.
    That being said, when Starbucks toyed with the idea of introducing the
    Trenti cup, it was major network news in Canada too for the same reasons
    as Tim’s XXL, health concerns.
    Making the news isn’t always a
    great thing. If Tim’s was truly concerned with “the little things”, it
    would concentrate on cup consistency. That is their major weakness and
    where their competition is making inroads into their market. Your brand
    is not what their TV ads say, it’s what every cup of coffee they pour
    says. And judging by their lowering market share, it’s saying that
    they’re not maintaining their brand promises.

  • http://twitter.com/Chris_Eh_Young Margaret Sims

    Chris,

    Thanks for your comment.  I agree with your comment that
    the Tim Hortons change is about competition and staving off loss of
    market share, but I don’t think that is a bad thing.  Tim Hortons has
    done and continues to do a really good job of minding all the small
    aspects of its valuable brand.  This small latest change to cup size
    names is just another example of how little things matter.

    What I
    find particularly remarkable is that Tim Hortons managed to make this
    cup size name change into news and there were news stories in newspapers
    and the evening news. It may be because Tim Hortons has managed to
    associate its brand with activities and events that Canadians hold dear,
    and in a way that is inclusive of all Canadians.  While I digress, I
    still love the Proud Father spot (http://ow.ly/8AhUE) and the Welcome Home spot (http://ow.ly/8AhX5 ).

    Margaret, Distility

    • http://twitter.com/Chris_Eh_Young Chris Eh Young

       I do agree, their spots are really well done. Tim Hortons made this news
      because 1) Things to do with health are news nowadays and this XXL cup
      exceeds doctor recommended limits for caffeine intake daily. Tim Hortons
      now has a health concern on its hands. Hardly good news but news
      indeed. 2) Tim Hortons has become synonymous with Canadian coffee. That
      being said, when Starbucks toyed with the idea of introducing the Trenti
      cup, it was major network news in Canada too for the same reasons as
      Tim’s XXL, health concerns.

      Making the news isn’t always a great
      thing. If Tim’s was truly concerned with “the little things”, it would
      concentrate on cup consistency. That is their major weakness and where
      their competition is making inroads into their market. Your brand is not
      what their TV ads say, it’s what every cup of coffee they pour says.
      And judging by their lowering market share, it’s saying that they’re not
      maintaining their brand promises.      

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